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The ultimate guide to switching your car insurance

TL;DR:

  • Switch at renewal to avoid fees. The easiest way to switch without penalty is when your policy is up for renewal. You can switch mid-term, but you may have to pay a small cancellation fee.
  • Compare more than just price. When reviewing quotes, make sure the coverage levels, deductibles, and benefits are comparable to your current policy to ensure you're getting a better value.
  • Mind the gap. To avoid being uninsured, always make sure your new policy is officially active before you cancel your old one.

Noticed your car insurance price has gone up? You’re not alone. In a recent survey, 75% of Canadians reported seeing their insurance premiums climb over the last two years, with 40% actively shopping around for a better rate.1 But making the switch can feel complicated. If you have a loyalty discount, will you lose it? Is switching worth the hassle?

We get it. Switching insurance can seem like a lot of work, but it doesn’t have to be. Let’s walk through the process, so you can make the right choice for your needs and your wallet, without the stress.

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How do I switch my car insurance?

The process of changing auto insurance can be stressful if you don’t know where to start. Here’s an easy-to-follow guide on how to switch car insurance providers:

  1. Compare auto insurance quotes. Did you know that the average Canadian researches an average of three different providers when buying or renewing their car insurance? Shop around to see who offers the best coverage and customer service at a better rate. Make sure you're matching coverage, limits and deductibles to your current policy.
  2. Research the companies you're interested in. Sure, the price might be right, but what about reputation? Make sure to read customer reviews and pay attention to the claims experience.
  3. Be sure the quote is accurate. Provide detailed, accurate, up-to-date information about you, your car and your claims and driving history. Some online providers (usually direct insurance writers, like Sonnet) offer accurately priced quotes in minutes.
  4. Tell your current insurer. Once you've done your homework and found something that works for you, you must proactively cancel your current policy. A common question: should I cancel my car insurance before switching? The answer is no. Make sure your new policy is set up and paid for before scheduling the cancellation to avoid gaps in coverage.
  5. Inform your leasing or financing company. Since they have a financial stake in your policy, you'll have to contact your lessor or financing company to let them know you're switching. Remember to list them as an additional interest in your new policy as well.
  6. Get your new proof of insurance. Don't forget to put your new insurance card (or "pink slip") in your glove compartment, or if you’re a Sonnet customer, you can access your digital pink slip through your customer account.

Note on switching vehicles: This guide focuses on how to switch car insurance providers. If you simply need to change the vehicle on your existing policy, the process is much simpler. You can usually do this by contacting your current insurer online or by phone.

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How to compare car insurance quotes

Knowing how to switch car insurance effectively starts with a fair comparison. When you're ready to start shopping around, here’s what to look for: 

  • Know your current policy. Knowing what's on your policy will help you know what to look for and compare prices.
  • Provide consistent information. Be consistent with the details you share (commuting distance, tickets, past claims) so that you can compare apples to apples.
  • Match the coverage. Double-check the type of coverage and make sure the deductibles are the same, too.
  • Check the limits. Pay attention to how much each company provides for the coverage you need. Sometimes they will have varying limits for things like rental cars, liability or accident benefits coverage.
  • Understand the exclusions. You don't want any surprises if you have to make a claim, so carefully review anything that won't be covered. For example, regular wear and tear or mechanical failure are typically not included.

Why are Canadian car insurance premiums going up?

It’s no secret that life has gotten pricier. Auto insurance premiums across the country climbed 23.9% between late 2019 and late 2025.2 The main culprit? The rising cost of passenger vehicle parts, maintenance and repairs, which surged by 22.6% over the same period.3 Because modern vehicles are made with more advanced technology, they cost more to repair after an accident, which affects rates across the board.

How often can you change car insurance providers?

You can make a switch whenever you need to, whether it's mid-term or at your renewal date. The best time to switch car insurance is often at renewal to avoid potential fees, but generally, there are no other consequences for changing auto insurance more frequently than the average driver.

Often, drivers may have an accident/conviction that gets forgiven on their policy. Switching midway through will result in them being rated for said accident/conviction with a new provider.

Can I switch car insurance mid-policy?

If you cancel your policy before the term is up, you may be eligible for a refund for the unused portion of your premium. However, some providers charge a cancellation fee. There are two common methods:

Prorating car insurance

A pro-rata cancellation means your provider will refund the full amount of the premium you've paid that you haven't used, with no additional fee.

Short-rating car insurance

A short-rate cancellation includes a penalty for ending your policy early. Your provider will retain a portion of the unearned premium to cover administrative costs, and you will be refunded the rest. This amount will vary by company, and you should be able to find more information about it in your policy documents. The savings from changing auto insurance might outweigh the penalty, making it worth it to cancel mid-policy. However, if the fee is high, it may be better to wait until your renewal (our insurance cancellation calculator can help you do the math).

Will have a pro-rata or short-rate cancelation?

The answer is that it depends on the situation behind the cancelation. For example, if you’re moving to another province that your provider does not service, you may be able to cancel pro-rata. However, if you are canceling to switch to a different provider, a short-rate cancellation may be applied.     

Can I change car insurance after an accident?

Yes, you can still switch providers if you have an open claim. Just be aware that the insurance company you were with at the time of the accident will continue to handle that specific claim. When getting quotes, you must disclose the open claim to the new insurance company, even if it’s still in progress.

How do I change my car insurance if I'm moving to another province?

Since car insurance varies by province, the process depends on where you're moving. Before you switch, it’s a good idea to understand how your local rules might impact your coverage:

Province

Insurance system

Switching tip

Ontario

Private (no-fault)

 Rates vary significantly. Compare private quotes 30–45 days before   renewal to avoid short-rate cancellation fees.

Alberta

Private (no-fault)

 Compare private quotes: your grid rating and clean driving record could   help you save on your premium.

Quebec

Hybrid (public/private)

 Public insurance covers bodily injury; compare private insurance quotes   for property damage coverage.

If you're moving to Manitoba, Saskatchewan or British Columbia, you will need to visit their official government websites to learn how to register, as these provincial governments provide their own public insurance.

Frequently asked questions (FAQs)

Will switching car insurance affect my credit score?

No, getting a car insurance quote and switching providers in Canada will not impact your credit score. Insurers may perform a “soft” credit check to provide an accurate quote, which doesn’t affect your overall credit rating.

When should I start my new policy?

To avoid paying twice and prevent a gap in coverage, make sure your new auto policy starts on the exact day your old policy ends. If you have a unique situation and aren’t sure whether you’ll need an overlap in coverage, feel free to contact your insurance agent for professional guidance.

Changing car insurance providers? Sonnet is here to help.

Now that you know how simple it is to switch car insurance, you can make an informed decision. The most important thing is to ensure you’re always fully protected without any gaps in coverage. If you're looking for a provider that combines great rates with a seamless digital experience, consider Sonnet insurance. We offer customizable coverage and a quote you can trust in just a few minutes. See how much you could save by making the switch today.  

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Sources

1 Rates.ca household insurance to income survey
2 Statistics Canada Consumer Price Index
3 Statistics Canada: Extreme weather impacts on consumers and insurers in Canada, December 2019 to December 2025

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